Although the metaverse is infinite and hence the value of ‘land’ there should not be the subject of appreciation, this is nevertheless what has been happening. Are people piling in because of FOMO? Or are those actively trading properties in the metaverse simply more visionary than the rest of us?
Cryptocurrencies, and the blockchain technology that underpins them, form the basis of many ‘realities’ in the metaverse, including property transactions. Ethereum, other than being a cryptocurrency, is also the platform enabling blockchain technology and where transactions, in the form of Non-Fungible Tokens (NFTs), can be registered. Blockchain was originally developed as a virtual bank for cryptocurrencies, but now allows anyone to register ownership of any type of virtual asset, be it a drawing, an article, a video game, a virtual dress or a piece of real estate.
Ethereum, as the mothership of Blockchain, is also the platform powering Decentraland. Decentraland is a virtual space/country/community, owned by all its users. Land in Decentraland is a community owned good, held in a Blockchain ledger of land parcels of about 52.5 square feet each. Users can buy ownership of a parcel of land, which will give the user full control over what content is published on their parcel and allow the user to build anything to their liking on it. Much like in the real world.
Virtual land requires payment with a cryptocurrency and on Dencentraland this is MANA (CRYPTO MANA). Crypto currencies need to be held in a digital wallet outside the metaverse (for example on Coinbase) and will then have to be connected to it. When ‘opening’ your wallet, aka your virtual bank account, you get assigned a seed phrase. Do write this down the old-fashioned way as losing the seed phrase and access to your ‘wallet’ is the equivalent of losing all your digital assets.